In mid 30s thinking of going for FIRE on 8.5cr. Single n no plans to marry. Won't have any inheritance from parents. Done with the rat race, n now want to take a break. My calculations are:- Buying decent 2bhk: 1.5 cr Car .20 cr (20 lakh) Furniture etc .1 cr ( 10 lakhs) Buffer for bad times - 1 cr Rest - 5.5 cr would feath me 22lakh (at FIRE percentage of 4%) With this 22 lakhs - I can have 1 lakh per month for expenses (food, petrol, electricity, hobby, cloths, maid, cook, grocery, any shopping, medical insurance etc) rest 10 lakhs I can spend on travel, any big expenses, gift for family, etc . Am I missing something? Will I need more?
Are you in the US?
Currently, yes. Lived in Bangalore before so I like it.
My reasons for asking were: 1. The amount looks too high for someone to have saved in India. 2. Depending on how long you've lived in the US, you might not like returning back to India. Point number 2 is a basic fallacy that a lot of people suffer from. It's the equivalent of someone from a tier 2 or 3 city working in Bangalore for 15-20 years, and then going back to their place to "FIRE". The same equations will work in this case too. But how many people do you actually see doing that? In my observation, there is usually no going back. Not that you don't want, but because you can't. In philosophical terms, time would have paused back in the village while you would have outgrown time.
34-36 is too early to retire, work with/for some NGO or non-profit to get some good contacts or you will get depressed
Yes, I will take a break for a year or 2 then, Ill see what to do. But, don't want to think of money anymore..
You will get bored in couple of months.
I like the strategy, fyi.
You are missing the taxes you have to pay on 22 lakhs
Without taxes, it's 6% interest rate
Invest in an Individual house not in Flat.
I prefer flat for safety reasons plus easy to manage as I am single n no kids n easy to travel as lock it n go. I need smaller space.. 1-2 bhk is okay.
Skip buying the flat. It's unnecessary as you'll likely want to move around, enjoy your freedom. Rent for a good 2bhk is 40,000 pm. Even if you take 50,000 that's 6 lacs annually. Even a FD of 1.5 crore is 10.5 lacs annually.
I agree, single and planning to fire I don’t think it’s worth buying unless you are renting it out for income. It’s better to rent OP, so you can be flexible n move around.
It does not make much sense living in a country which is not very highly developed. Expensive cars need traffic-free roads of better quality to make your ride comfortable. Quality of medical care is another problem. The best you can do with 8.5 crores, is to buy several pieces of land in a rural area to create a big house, and live in it with dozens of servants; wear gold/diamond rings in all fingers, buy some useless luxury items, but that’s it. You can’t buy clear air, fresh water, solid roads and quality healthcare with money.
Numbers look ok to me. Do account for the fact that 4% withdrawal may not be sustainable in the long term in Indian context so try to keep it under 2-3% In fact, I'd suggest consider inflation separately across different categories and see what your personalized inflation comes out to be as per expected expenses way into the future.
I'll be investing in USA, so ROI would be 8.. But, indian inflation could be still be an issue..
indian inflation is 5.5-6.5%. 8% roe means you can only withdraw 1.5-2%. But 10% should be possible with mix of equities/FD/devt etc in India. diversify as much as possible while maintaining 10% roe. Also take multiple health insurances. In any case, I won't max out on the withdrawal rate and allow myself to get richer though at a slower rate.
If you have the money invested and take up a small stress free job to cover your expenses a bit, you are all set, you don't have kids, so you don't have to worry too much if you invest the 5cr
Small stress free job like a receptionist?
For a couple of years, I'll just travel in India, spend a month or so with family.. And, then probably would do something which I like, which can or can not generate money, just don't want to think of money anymore.
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It's sufficient. And it would be min 8% .
How much have you already saved? And age?